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 PART 2

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 138


 PART 3

 MAINTENANCE REDELIVERY ADJUSTMENTS

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 \*\*2 pages\*\*

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 SCHEDULE 4

 INSURANCE REQUIREMENTS

1. Types of Insurance

The Insurances required to be maintained are as follows:

(a) Hull insurance covering loss of or damage while flying and on the ground
 with respect to the Aircraft on an agreed value basis for the Agreed Value
 and with a deductible not exceeding the Maximum Deductible Amount, or such
 other greater amount as is consistent with market practice in the airline
 insurance industry from time to time and similar carriers operating
 similar aircraft in similar circumstances;

(b) Hull War and Allied Perils insurance, being such risks excluded from the
 Hull All insurance to the extent reasonably commercially available from
 the leading international insurance markets (except for confiscation by
 the Country of Registration), for an amount no less than the Minimum War
 Risk Coverage;

(c) Hull All Risks (including War and Allied Perils except when on the ground
 or in transit other than by air) property insurance on all Engines and
 Parts when not installed on the Aircraft on an "agreed value" basis for
 their full replacement value and including engine test and running risks;